The advantage of a "buy-and-hold strategy" is that
A) net profits will tend to be higher because there will be fewer brokerage commissions.
B) losses will eventually be eliminated.
C) the longer a stock is held, the higher will be its price.
D) profits are guaranteed.
A
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Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly increases. What would probably happen to a firm in this industry in the long run?
a. It would experience no change for the original equilibrium b. It would experience a higher equilibrium price c. It would experience a lower equilibrium price d. It would experience the same equilibrium price but would reduce its output e. It would experience higher average total costs and would reduce its output
Deflation is
A. a constant rate of inflation. B. a slow-down in the rate of inflation. C. zero inflation. D. a decline in the average price level.
One of the characteristics of a command economy is
A. free enterprise. B. complex markets. C. the pursuits by individual and firms of their own self-interest without any central direction or regulation. D. central planning.
In order for good X to be a likely candidate for offshoring, it must be produced with ______________ labor intensity and be a relatively ________________ good
A) low; light B) low; heavy C) high; heavy D) high; light